PNC Investment is the advisory branch of PNC Bank, a bank based in Pittsburgh. The firm’s advisory business is broad, which is befitting of such a large parent organization. PNC Investments serves tens of thousands of individual clients and thousands of institutional clients.
PNC Wealth Management Background
The broader company of PNC was founded in 1982 when Pittsburgh National Corp. and Provident National Corp merged. It changed its name in 2000 to PNC Financial Services, which uses the marketing name PNC Wealth Management to provide investment management, wealth management and banking products and services to clients. The firm provides brokerage and advisory services through PNC Investments, LLC, a registered broker-dealer and investment advisor.
The company is publicly owned and traded on the New York Stock Exchange and has branches in 29 states.
PNC Wealth Management Client Types and Minimum Account Sizes
PNC's minimum account size requirements vary based on type of account, ranging from as little as $5,000 for the firm's PNC Digital Advisor Program to as much as $275,000 (typically $250,000) for the Portfolio Solutions option with a tactical allocation to variable annuities.
In addition to individuals and high-net-worth individuals, PNC also serves a number of institutional investors. These include pension and profit-sharing plans as well as charitable organizations, corporations and other entities.
Services Offered by PNC Wealth Management
Services offered at PNC include:
- Wealth strategies
- Investment management
- Insurance needs evaluation
- Trust and estate services
- Private banking services
The firm also provides detailed statements and quarterly performance reports to clients, as well as regular in-depth conversations about your portfolio with members of your team.
PNC Wealth Management Investment Philosophy
The investment philosophy at PNC largely depends on what program you choose. In the Portfolio Solutions program, there are five asset allocation models to choose from:
- Conservative: This plan uses a low-risk posture to generate a modest amount of current income and provide a modest amount of long-term capital growth. It mixes equities with fixed-income securities.
- Moderate: The moderate asset allocation model seeks to generate moderate current income with the potential for long-term growth. It is generally split between equities and fixed income, with some allocation to cash and money market instruments.
- Balanced: This plan looks to provide long-term growth that exceeds inflation. There are investments in both equities and fixed income, but more in equities.
- Growth: Long-term capital growth is the primary goal. The portfolio concentrates on equities but may generate some current income through investments in fixed income.
- Aggressive: There is a higher risk posture in this model with the goal of creating long-term capital growth. Investments are concentrated in equities.
The PNC Directions program has the same five asset allocation models but is focused on mutual fund and ETFs.
Meanwhile, the PNC Capital Directions program gives clients a unified investment advisory platform with diversified portfolios through a single brokerage account. The asset allocation strategies are ultra-conservative, conservative, moderate, balanced, growth and aggressive.
Fees Under PNC Wealth Management
Each type of account at PNC has a different fee structure. The Portfolio Solutions program charges a program fee based on a percentage of your assets under management. It is charged quarterly and is based on the average daily market value of your account over the previous quarter. This fee covers administrative, commission, execution and management expenses.
| Portfolio Solutions Program Fee Table | |
| Assets Under Management | Fee Rate |
| First $250K | 2.00% |
| Next $250K | 1.75% |
| Next $500K | 1.50% |
| Next $1MM | 1.25% |
| Next $2MM | 1.00% |
| Over $4MM | Negotiable |
The PNC Directions program has a flat rate of 1.00% after various fee credits are taken into account. Clients are charged quarterly based on the average daily market value of the account over the previous quarter. The minimum annual fee is $80. You’ll also be charged based on each fund you invest in.
There is also a program fee for the Capital Directions program. It is based on a percentage of total assets under management. This fee starts at 2.00% and becomes negotiable for higher asset totals. If clients choose to use an investment model provided by a Model Provider, they will be charged separate fees.
| Capital Directions Program Fee Table | |
| Assets Under Management | Fee Rate |
| First $250K | 2.00% |
| Next $250K | 1.75% |
| Next $500K | 1.50% |
| Next $1MM | 1.25% |
| Next $2MM | 1.00% |
| Over $4MM | Negotiable |
What to Watch Out For
PNC has 15 regulatory disclosures from the past 10 years listed on its SEC-filed Form ADV.
The firm or an affiliate advisor has been found to be involved in a violation of investment-related regulations or statutes, and a federal or state regulatory agency entered an order against PNC for an investment-related activity.
PNC Wealth Management is a large investment firm. That comes with both positives and negatives. On the plus side, there are all the advantages that a big bank has to offer, including banking and lending services not normally offered by financial advisory firms.
On the other hand, though, the firm has a high number of advisors and clients. If you’re looking for an advisory firm with a more family feel, PNC is unlikely to provide it.
Opening an Account With PNC Wealth Management
Those looking to open an account with PNC can contact the firm through its website or call (800) 762-6111.
Financial Planning Tips
- Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
- If you make above a certain income, you may be locked out of using an IRA to save money. A backdoor IRA, though, may be a solution to that problem.
